Capitalizing on 'world's love affair' with country, Ottawa plans first euro-denominated bond issue in more than a decade
5 January 2010
Globe and Mail Update
By Tavia Grant and Boyd Erman
Foreign investors are hungry for a piece of Canada.
A stable banking system, a recovering economy, an abundance of commodities and a fiscal policy deemed to be sound are enticing investors, and in turn boosting Ottawa's access to foreign financing and strengthening the dollar.
Playing into what Scotia Capital has labelled "the world's love affair with Canada," the Finance Department announced plans Tuesday for its first euro-denominated bond issue in more than a decade. The government is seeking at least €1-billion ($1.49-billion) from the 10-year bonds, and bankers said there is enough interest to sell twice that amount. Ottawa's move came as the dollar rose for the fourth consecutive day, closing at 96.25 cents (U.S.), its highest since mid-October.
"The world wants what Canada has: natural resources, stable currency and responsible fiscal policy," said Andy Busch, Chicago-based currency and public policy strategist for BMO's U.S. investment unit.
